PEARMAN PULSE - OCTOBER
Pearman Media
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AUSTRALIA - UNUSUAL POPULATION INDEED!
Australia is ranked 6th in the world in terms of land mass but 54th in terms of population size. This makes us very unusual for marketing when it comes to where or how our population is distributed. 65% of our population live in the 5 capital cities with only 35% living outside those areas. Australians love the coastal lifestyle!
Compared to the US, only around 6% of its population live in the 5 largest cities and in the UK around 25% live in the 5 biggest cities. Covid certainly encouraged growth in regional areas which outpaced the capital cities during that time. However, in FY23, the growth in capital cities was 3.0% compared to regional Australia which grew at 1.4%. Most of the capital city growth is from overseas migration which is a main driver for the metro cities having a proportionately younger demographic. Regional Australia has 48% of its population over 50 while the capital cities has approx. 38% of its population over 50. Given the price of property, it is understandable that many older Australians in capital cities cash in the family nest egg to move to a regional area.
Since 2019, Australia has seen an 18% increase of households shopping online in regional areas, while metro areas have seen a 16% growth rate. Generally, the percentage of Online shopping is similar from capital cities to regional areas. ?However, there are some areas in regional Australia that over index for online shopping including Canberra, Wollongong and all of Regional Qld.
Media in regional Australia is interesting for a couple of reasons. Firstly, there is less clutter in the regional markets. For example, capital cities tend to have 6-9 main commercial Radio Stations in each market while many regionals have one or two commercial stations. Compared to the capital cities, the regional markets consume less SVOD or PayTV services, go to Cinema less and see less Outdoor. “Quality” creative stands out more as it is more unusual. The other interesting thing about regional media is that it can be cheaper to reach a thousand people in regional areas compared to the capital cities. This is particularly the case for Television.
What does this mean to advertisers? Distribution is a double-edged sword. We once had an international client launching in Australia and were happy to do a test campaign in a regional market. That is, until they realised that to deliver their 1.5m x 0.5m sized product to a regional area would cost an additional $150. This made it unviable, so they concentrated on metro areas. Regional markets can certainly be viable and attractive if you are looking for online shoppers as long as the distribution cost is reasonable. However, your media costs will work more efficiently in those regional areas meaning your share of voice will be higher or cost per lead will be lower.
As with all marketing strategies, it is crucial to review where the customers or potential customers are and what the distribution costs are. There are many ‘satellite’ cities within an hour or two of the 5 Metro Capital cities, that many young people are moving to in droves. The Top Five LGAs by share of total net migration to regional Australia in the last 12 months are the Sunshine Coast, Greater Geelong, Moorabool, Lake Macquarie, and the Gold Coast. Queensland is particularly interesting as 51% of its population live in the regional markets. The 35% of people living in regional areas should not be overlooked and could possibly be an opportunity as only 17% of Australia’s advertising dollars are spent regionally. ?
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WHAT'S NEW IN MEDIA - OUTDOOR THAT COMES TO LIFE
?You’ve heard of OOH (Out-Of-Home), DOOH (Digital Out-Of-Home), and PDOOH (Programmatic Digital Out-Of-Home), but have you heard of 3DOOH? 3D Out-Of-Home billboards are not a new concept in the Outdoor landscape but are increasingly becoming more popular as more OOH companies are jumping on board. Example of 3DOOH?
Innovation can not only be seen in iconic landmarks like New York’s Times Square but can now be seen in our own backyard with sites such as Macquarie Centre (Sydney), Emporium Swanston Street (Melbourne), Myer Centre (Brisbane), and Yagan Square (Perth). Australia is joining the world in its creative movement, with new 3D Anamorphic Billboards becoming live increasingly more often. This month, oOh! Media just announced its new 3DOOH site in Martin Place Sydney.
Costs of 3D Anamorphic sites are not cheap, but the costs are coming down. Weekly media costs are dependent on the site but range between $5,000 to $16,000. On top of this there is a ‘licensing fee’ of $15,00, plus the production of your actual creative (which can range from $10,000 to $15,000). If you’re looking for a more cost-efficient alternative, there are some sites that are 3D Scalable which can accommodate 3D creative at a much lower cost. A study has shown that 41% of potential Out-Of-Home ROI (Return on Investment) is driven by the creative, with the remaining 59% determined by how the campaign is bought. 3DOOH is not just an awareness builder like traditional OOH but works as a PR stunt that can be captured on socials.
Speaking of PR stunts, have you heard of FOOH (Fake Out-Of-Home)? That’s right, you can now ‘fake’ your stunts; with the latest example being the House of the Dragon billboard being burned by a CGI dragon. That’s enough acronyms for this article. The bottom line is Out-Of-Home is leading the way for creativity and innovation. It is now easier than ever to bring creative ideas to life! ?
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DIGITAL - MEASURING DIGITAL OUTDOOR ?
Back in the stone age, for Outdoor we bought a static sign (mostly for Cigarette or Alcohol companies) for a month, or a year, and our ad had 24/7 exposure (except at nightre was no measurement of audience until ‘MOVE’ was introduced in 2010. At that point, we had an idea of the potential audience that passed by or had an opportunity to see the ad for the entire week or month. As a result, Digital Outdoor signs allowed the Outdoor companies to sell their digital signs in short time zones based on a cost per thousand (CPM) and charge on how many total impressions have been achieved. A lot of media’s ads are ‘one to one’, but Outdoor is ‘one to many’ which requires a lot more thinking of how to measure it.
As Digital signs are thought to account for more than half of the category’s revenue, MOVE launched MOVE1.5 and will soon launch MOVE2.0 to include measuring Digital Outdoor. To say it is a massive task is probably understating the project. MOVE use mobile data, Census data, ABS data, seasonality, etc to determine the size of the potential audience for each sign. They also evaluate each format using a Neuro Impact Factor (NIF) to estimate the likely attention or impact the sign produces. It doesn’t evaluate the ad itself, just the opportunity for the ad. MOVE uses an enormous array of factors such as the distance the sign can be seen from, its angle, height, illumination, speed of oncoming traffic, etc.
Where MOVE differs, the basic premise is to start with the maximum possible audience in a day and then reduce it by factors such as obstruction, route change etc. to determine how many impressions they are delivering for each ad. Interestingly, for most media measurement (e.g. TV, Radio, Print), we usually measure a sample size and then extrapolate it to the entire population.? The outcome is that for Outdoor campaigns we now get reach and frequency figures based on the higher Opportunity To See (OTS) and the more realistic figure of Likely To See (LTS). ? ?
SMI UPDATE – AUGUST 2024
The July24 total figure has moved from -7.8% to -2.21%. This ‘updated’ figure was consistent with April and May although the June figure was a surprising +3.92%. August had 58% of the Olympics in it but still managed to have a decline of -6.3% compared to last year. This will most likely change to -1 or -2% once the final late bookings are added in the September figures. As Nine covered the Olympics, it is no surprise they were the big winners in gaining share of ad spend in August. Nine increased its TV ad revenue by 65%, and for 9Now it went up a huge +219%. ?There wasn’t much good news for all other media although Cinema would have been pleased with the month.
At least more than half of the top 20 categories increased their spend in August, although a lot of the categories outside the top 20 decreased their spend. The top 5 categories also had a minimal increase or a decrease. Retail was +0.7%, Auto +4.2%, Insurance +1.0%, Food was +4.8% and Banking was -5.6%. Of course, Government had a big increase of +33.4% while Travel increased +4.1% and Home Furnishings was up +7.6%.
As said, Cinema, at +58.2%, had a very good August in terms of advertising spend. It seems that Digital has really pulled August down as Digital was -10.3%. However, the thing to note is that much of the late bookings added will most likely come from Digital as they usually do. Print had another bad month with Newspapers at -26.3% and Magazines at -12.8%. Radio (Audio) didn’t have a good month (-5.3%) compared to a breakeven in July. Video (TV) was down -2.6% and Outdoor was -1.5%. The Jan-Aug’24 results show the market back just 1.3% with Outdoor (+5%), Digital (+2.8%) and Cinema (+8.8%) all in positive territory for the 8 months. ? ? ?
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FAST FACTS ?
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